Year-end Report for 2005

Earnings per share after dilution amounted to SEK 14.8 (15.1). The return on equity was 8.0 % (7.9).

The operating profit was MSEK 1,973 (1,952). Higher prices for newsprint and magazine paper had a favourable effect on the result, while costs of energy, chemicals and transports increased significantly.

The fourth quarter operating result was MSEK 570, which was MSEK 20 lower than for the previous quarter.

The Board proposes that a dividend of SEK 11 per share be paid. For the previous year the dividend paid was SEK 10.

The market situation for newsprint in Europe remained good during the fourth quarter. Holmen Paper's full-year deliveries increased by 2 % in relation to the previous year. Negotiations on price increases are in progress.

The market situation for virgin fibre board in Europe remained good during the fourth quarter. Iggesund Paperboard's full-year deliveries were 2 % lower than in the previous year owing to lower production. Prices were stable.

Stockholm 2 February 2006

Magnus Hall
President and CEO

This report has not been examined by the company's auditors.
The interim report for January-March 2006 will be published on 27 April.
The 2006 AGM will be held in Stockholm at 4.00 pm on 28 March.